If $7,800 is deposited into an account paying 6% interest compounded annually (at the end of each year), how much money is in the account after 2 years?
A)$8,764.08
B)$8,268.00
C)$9,289.92
D)$7,332.00
2007-02-23 08:32:23 · 11 answers · asked by Anonymous in Science & Mathematics ➔ Mathematics
Easy formula is p * (1 + i)^y
where p is the principal, i is the interest, and y is the number of years.
In this case:
7800 * 1.06^2 = 8764.08
You could also do this manually by multiplying 7800 by 1.06 and then multiplying the result by 1.06 again.
2007-02-23 08:37:13 · answer #1 · answered by Bob G 6 · 0⤊ 0⤋
One way to solve a problem like this is to use the following equation;
M = P (1+i )^y
where M = value at the end of the time period
P = the amount of money deposited
i = the interest rate
y = the number of years
so M = 7800 ( 1+.06)(1=.06) or
$ = $8,764.08
2007-02-23 16:49:13 · answer #2 · answered by indyacom 3 · 0⤊ 0⤋
the formula for compound interest is:
A = p( 1 + r ) ^ t
where a is the amount after a period of time
p is the starting balance
r is the rate as a decimal
and t in the time in the correct period ie. years, months, ect.
Using the formula and a calculator
A = 78000( 1 + .06 ) ^ 2
A = 78000(1.06)^2
A = 8764.08
that would be the first answer listed
2007-02-23 16:43:07 · answer #3 · answered by Ray 5 · 0⤊ 0⤋
The answer is A.
Amount = $7800*(1+.06/1)^2 = $8764.08
2007-02-23 16:36:34 · answer #4 · answered by Anonymous · 0⤊ 0⤋
6% * 7800 = 468
add intrest to original sum
total sum 7800+468 = 8268
for second year intrest is compound so it will be on total sum
8268 * 6%= 496.08
the total after 2 years = 8268+496.08=8764.08
which is choice numger one
i hope that helps
2007-02-23 18:07:48 · answer #5 · answered by emy 3 · 0⤊ 0⤋
after one year
$7,800 * 1.06 = $8268
after two years, take previous total
$8268 * 1.06 = $8764.08 or (A)
2007-02-23 16:37:54 · answer #6 · answered by Mary K 3 · 0⤊ 0⤋
I = 7800(1 + r)^t
I = 7800(1 + .06)^2
I = 7800(1.06)^2
I = $8764.08
ANS : A
2007-02-23 16:48:36 · answer #7 · answered by Sherman81 6 · 0⤊ 0⤋
ok so for the first year you do 7800*.06= 468
end of first year you'll have $8268
end of second year 8268*.06 = 493.08
so you will have $8764.08
2007-02-23 16:35:33 · answer #8 · answered by Anonymous · 0⤊ 1⤋
The answer is A.
You take $7800.00 *.06 = 468.00
7800.00+468.00 = 8268.00
8268.00 * .06 = 496.08
8268.00 + 496.08 = 8764.08
2007-02-23 17:29:58 · answer #9 · answered by zade 1 · 0⤊ 0⤋
the answer is $7800*1.06^2=$8764.08
A)$8,764.08 is correct
2007-02-23 16:37:07 · answer #10 · answered by yupchagee 7 · 0⤊ 0⤋